This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 101 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 101 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Amount by which a country's imports exceed its exports A) Currency. B) Trade Failure. C) Foreign Exchange. D) International Finance. Show Answer Correct Answer: B) Trade Failure. 2. What is an import? A) A good or service that a country buys from another country. B) A good or service that a country sells to another country. C) A good or service that is produced within the same country. D) None of above. Show Answer Correct Answer: A) A good or service that a country buys from another country. 3. By fully utilising all their resources, Country A can produce either 100 cars or 1000 scooters, whereas Country B can produce 50 cars or 250 scooters. Which of the following statements is CORRECT. A) Country B has absolute advantage in cars. B) Country A has comparative advantage in cars. C) Country A has comparative advantage in scooters. D) Neither country has comparative advantage in any of the goods. Show Answer Correct Answer: C) Country A has comparative advantage in scooters. 4. When a nation's economic policy increases competition, allows domestic goods to be sold all over the world, allows country to expose comparative advantage through specialization. A) Arguments for free trade. B) Arguments against free trade. Show Answer Correct Answer: A) Arguments for free trade. 5. Removes taxes and tariffs on a countries exports A) Free Trade. B) Protectionism. Show Answer Correct Answer: A) Free Trade. 6. In the context of international business, what does FDI stand for? A) Foreign Direct Investment. B) Federal Duty on Imports. C) Foreign Development Initiative. D) Free Delivery and Importation. Show Answer Correct Answer: A) Foreign Direct Investment. 7. What are the requirements for an international trademark application to be accepted under the WIPO Madrid System? A) Payment of a fee, proof of use in home country, approval from all member countries. B) Proof of use in home country, payment of a fee, domicile in a non-member country. C) Basic application or registration in home country, domicile in a non-member country, approval from all member countries. D) Basic application or registration in home country, nationality or domicile in a member country, designation of member countries for protection. Show Answer Correct Answer: D) Basic application or registration in home country, nationality or domicile in a member country, designation of member countries for protection. 8. The exchange of capital (money), goods, and services across international borders or between nations A) Global Trade. B) Globalization. C) Trade Agreement. D) Free Trade. Show Answer Correct Answer: C) Trade Agreement. 9. International trade operates A) On the gold standard. B) With a fixed exchange rate system. C) With a flexible exchange rate system. D) None of above. Show Answer Correct Answer: C) With a flexible exchange rate system. 10. Why do economists regard imperfect competition as undesirable? A) It leads to political dictatorships. B) It allows firms to be less efficient producers. C) It results in unfairly low prices. D) It causes firms to lose money and move overseas. Show Answer Correct Answer: A) It leads to political dictatorships. 11. What is the term used to describe the situation when a country's imports exceed its exports? A) Trade surplus. B) Foreign debt. C) Economic growth. D) Trade fails. Show Answer Correct Answer: D) Trade fails. 12. In the context of global production, what does "containerization" refer to? A) The movement of people between countries. B) The standardized packaging and transportation of goods. C) The production of lightweight containers. D) A process of creating custom containers for products. Show Answer Correct Answer: B) The standardized packaging and transportation of goods. 13. It is government-imposed limit on the quantity or in exceptional cases the value of the goods or services that ma be exported or imported over a specified period of time. A) Quotas. B) Non-tariff. C) Tariff. D) Rhetoric. Show Answer Correct Answer: A) Quotas. 14. The WTO argues that removing tariff barriers and subsidies in the agricultural sector could: A) Protect agriculture farmers in developed nations. B) Lower prices to consumers. C) Lower the overall level of agricultural trade. D) Restrict global economic growth. Show Answer Correct Answer: B) Lower prices to consumers. 15. An economic system in which individuals and businesses make decisions about what to produce. A) Market economy. B) Mixed economy. C) Command economy. D) None of above. Show Answer Correct Answer: A) Market economy. 16. Which of the following program was intended to help the transport sector/industry/group amid to fuel price hike? A) Pantawid Balik Pinas Program. B) Crossroads Program. C) Heritage Past Program. D) Pantawid Pamilyang Pilipino Program. Show Answer Correct Answer: C) Heritage Past Program. 17. Administrative barriers refer to measures that A) Are a type of trade protection. B) Can be used as hidden protection. C) May consist of health, safety or environmental standards. D) All of the above. Show Answer Correct Answer: D) All of the above. 18. Bureaucratic practices of the government could cause delays in acquiring their permits and licenses. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 19. What does the process of specialization do for an economy? A) It eliminates unemployment. B) It fosters competition. C) It makes the economy more efficient. D) It makes it easier to control. Show Answer Correct Answer: C) It makes the economy more efficient. 20. The UK is leaving the European Union. This would make it harder for other countries to trade with it. What would happen the value of the British Pound? A) It would increase. B) It would decrease. C) It would remain the same. D) None of above. Show Answer Correct Answer: B) It would decrease. 21. India's major trade partners include A) Singapore, china, australia, united arab emirates, bangladesh. B) United States, United Arab Emirates, China, Singapore, Saudi Arabia and Iraq. C) United States, United Arab Emirates, Hong Kong, China, Singapore, Saudi Arabia and Iraq. D) None of the above. Show Answer Correct Answer: C) United States, United Arab Emirates, Hong Kong, China, Singapore, Saudi Arabia and Iraq. 22. What is the cultural argument for government intervention in international trade? A) To prevent unemployment. B) To protect domestic industries. C) To preserve national identity. D) To further foreign policy goals. Show Answer Correct Answer: C) To preserve national identity. 23. It is a firm that has directly invested abroad and has at least one working affiliate in a foreign country A) INTERNATIONAL COMPANY. B) MULTINATIONAL ENTERPRISES. C) BUSINESS OUTSIDE. D) BUSINESS COMPANY. Show Answer Correct Answer: B) MULTINATIONAL ENTERPRISES. 24. According to Adam Smith, international trade should be restricted by tariffs and quotas in order to give a country an absolute advantage. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 25. A transaction that brings money into a country A) Debit. B) Import. C) Credit. D) Export. Show Answer Correct Answer: C) Credit. 26. Proforma invoice A) Proform bill. B) Proforma invoice. C) Preform invoice. D) Commercial invoice. Show Answer Correct Answer: B) Proforma invoice. 27. Specialists in the U.S. trade laws, procedures, and tariffs A) Custom brokers. B) Investment brokers. C) Multinationals. D) Trade brokers. Show Answer Correct Answer: A) Custom brokers. 28. What is protectionism? A) An economic policy to restrict trade between countries through the imposition of barriers to trade including tariffs and quotas. B) Only trading within EU. C) Only trading within the Commonwealth. D) None of above. Show Answer Correct Answer: A) An economic policy to restrict trade between countries through the imposition of barriers to trade including tariffs and quotas. 29. What is the purpose of protecting consumers in government intervention in international trade? A) To prevent unemployment. B) To protect domestic industries. C) To further foreign policy goals. D) To maintain spheres of influence. Show Answer Correct Answer: C) To further foreign policy goals. 30. What products does Apple not make? A) IPhone. B) Apple TV. C) Xbox. D) IPad. Show Answer Correct Answer: C) Xbox. ← PreviousNext →Related QuizzesInternational Economics QuizzesEconomics QuizzesInternational Trade Quiz 1International Trade Quiz 2International Trade Quiz 3International Trade Quiz 4International Trade Quiz 5International Trade Quiz 6International Trade Quiz 7International Trade Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books